ChampionX Q3 2022 Earnings Report
Key Takeaways
ChampionX reported a strong third quarter with revenue of $1.0 billion, a 25% increase year-over-year. Net income attributable to ChampionX was $23.1 million, while adjusted EBITDA reached $166.1 million. The company's board also approved an increase in the share repurchase program authorization to $750 million.
Revenue reached $1.0 billion, a 25% increase year-over-year and 10% sequentially.
Net income attributable to ChampionX was $23.1 million.
Adjusted EBITDA was $166.1 million, up 34% year-over-year.
Free cash flow was $167.4 million, representing 101% of adjusted EBITDA.
ChampionX
ChampionX
ChampionX Revenue by Segment
Forward Guidance
For the fourth quarter, ChampionX expects revenue between $985 million and $1.015 billion and adjusted EBITDA between $176 million and $184 million.
Positive Outlook
- Activity is expected to improve in international markets.
- Continued price increase realization is expected.
- Sequential adjusted EBITDA margin improvement is anticipated.
- Constructive demand tailwinds are expected to support a favorable multi-year outlook.
- Continued delivery of solid bottom-line growth, adjusted EBITDA margin expansion, and strong cash generation is expected.
Challenges Ahead
- Normal seasonality is expected in North American businesses into the year-end holidays.
- Lower revenue is expected in Reservoir Chemical Technologies due to exiting certain product lines.
- restructuring efforts
Revenue & Expenses
Visualization of income flow from segment revenue to net income